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Page 1: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

INDUSTRIAL INDUSTRIAL POLITICAL REACTION POLITICAL REACTION

Page 2: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

CLASSICAL ECONOMICSCLASSICAL ECONOMICS

• Economists whose thought derived largely from Economists whose thought derived largely from Adam Smith dominated private and public Adam Smith dominated private and public discussions of industrial and commercial policy, discussions of industrial and commercial policy, and often associated with Laissez-faireand often associated with Laissez-faire

• Favored economic growth through competitive Favored economic growth through competitive free enterprisefree enterprise

• Distrusted government actionDistrusted government action• Government should Government should

• maintain sound currency, enforce contracts, protect maintain sound currency, enforce contracts, protect property, and impose low tariffs/taxesproperty, and impose low tariffs/taxes

• Maintain enough armed forces and naval power to Maintain enough armed forces and naval power to protect the nation’s economic structure and foreign protect the nation’s economic structure and foreign tradetrade

• Zollverein=free trading unionZollverein=free trading union

Page 3: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

• Thomas MalthusThomas Malthus• Proposed that the population would out grow the food Proposed that the population would out grow the food

supplysupply

• Working class+ more $$ = more children = more food Working class+ more $$ = more children = more food and wages neededand wages needed

• David RicardoDavid Ricardo• Iron Law of WagesIron Law of Wages

• Wages go up- Parents have more childrenWages go up- Parents have more children

• More Children working = Lower wagesMore Children working = Lower wages

• Lower wages = less childrenLower wages = less children

Page 4: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

GOVT POLICIES AND CLASSICAL ECONOMICSGOVT POLICIES AND CLASSICAL ECONOMICS

• France –France –• July Monarchy built large building projects, July Monarchy built large building projects,

• Did not address the issue of povertyDid not address the issue of poverty

• GermanyGermany• The Zollverein – free trading union to eliminate tariffs The Zollverein – free trading union to eliminate tariffs

• BritainBritain• Jeremy BenthamJeremy Bentham

• Used Utilitarianism as guide for govt. policiesUsed Utilitarianism as guide for govt. policies• 1834 Poor Law1834 Poor Law

• Dispersed relief at workhousesDispersed relief at workhouses• Poverty became an official social stigmaPoverty became an official social stigma

• Repealed the Corn LawsRepealed the Corn Laws• Abolish tariff on grain that would lead to lower food pricesAbolish tariff on grain that would lead to lower food prices

• Irish potato famine real reason Irish potato famine real reason • Started period of free trade in BritainStarted period of free trade in Britain

Page 5: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

EARLY SOCIALISTS- FRENCH UTOPIAN EARLY SOCIALISTS- FRENCH UTOPIAN SOCIALISTSSOCIALISTS

Count Claude Henry de Saint-Simon (1760-1825)Count Claude Henry de Saint-Simon (1760-1825) • Planned economy -Planned economy -

• Believed modern society requires modern Believed modern society requires modern management. Government by a board of directors. management. Government by a board of directors.

• Did not agree with wealth redistribution, but of Did not agree with wealth redistribution, but of making all not-poor by good management.making all not-poor by good management.

• Followers known as Saint-Simonians Followers known as Saint-Simonians

Charles Fourier (1772-1837) - Socialist CommunitiesCharles Fourier (1772-1837) - Socialist Communities• Dealt with problem ofDealt with problem of tedium in work tedium in work - each worker have - each worker have

several jobs and wander around from one to another so as several jobs and wander around from one to another so as to avoid tedium. to avoid tedium.

• Proposed that special industrial communities be set up. Proposed that special industrial communities be set up. There were called Phalansteres or Phalanxes. They  were There were called Phalansteres or Phalanxes. They  were communities on about 200 acres of land with 1500 people. communities on about 200 acres of land with 1500 people. • One set up in the US - Brook Farm, Mass, 1842-1847.  One set up in the US - Brook Farm, Mass, 1842-1847. 

TT• Only place this sort of socialism has ever worked is Only place this sort of socialism has ever worked is

Israel - the Israel - the kibbutzkibbutz is an example of a Phalansteres. is an example of a Phalansteres.

Page 6: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

Louis Blanc (1811-1882) - (Not really a Utopian.) Louis Blanc (1811-1882) - (Not really a Utopian.) • Leader of industrial workers in the Paris region. Leader of industrial workers in the Paris region. • Part of the French Cabinet (main government committee) Part of the French Cabinet (main government committee)

in France in just after the Revolution of 1848.in France in just after the Revolution of 1848.• The state should promote socialist programs and The state should promote socialist programs and

guarantee employment through "National workshops."  guarantee employment through "National workshops."  Set up for a while, until liberals displaced Blanc from the Set up for a while, until liberals displaced Blanc from the government.government.

Pierre Joseph Proudhon (more an Anarchist)Pierre Joseph Proudhon (more an Anarchist)• Claimed that the worker was source of all wealth, and so Claimed that the worker was source of all wealth, and so

would be able to use it. would be able to use it. • He ended up working for Louis III Napoleon.He ended up working for Louis III Napoleon.

Page 7: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

EARLY ENGLISH SOCIALISMEARLY ENGLISH SOCIALISM

Robert Owen (1771-1858)Robert Owen (1771-1858)• Born poor, Born poor, • Important and successful factory owner. Important and successful factory owner. • Committed to improving life for workers. In his industrial center at  Committed to improving life for workers. In his industrial center at 

New Lanark - New Lanark - • Built houses and schools for children. Built houses and schools for children. • Did not pay workers off during a depression. Did not pay workers off during a depression. • Made a Profit. Made a Profit. • He later organized an unsuccessful copy in the US at New He later organized an unsuccessful copy in the US at New

Harmony.Harmony.• Owen's Aims: Owen's Aims:

• Thought people could be made better by better conditions (goes back to Thought people could be made better by better conditions (goes back to Locke). Locke).

• Shows no need for bad conditions or low wages. Shows no need for bad conditions or low wages. • Basically paternalistic. Basically paternalistic. • Ended his long life as a spiritualistEnded his long life as a spiritualist

• The Grand National Consolidated Trade Union The Grand National Consolidated Trade Union • The GNCTU was a mass union founded by Owen in 1830s. The GNCTU was a mass union founded by Owen in 1830s. • Tried to unite all workers into once huge union. Tried to unite all workers into once huge union. • Suffered a collapse in the 1830s.Suffered a collapse in the 1830s.• The idea that workers should be organized in unions was central to later The idea that workers should be organized in unions was central to later

British socialism.British socialism.

Page 8: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

ANARCHISMANARCHISM

• abolition of both capitalism and the state supported by abolition of both capitalism and the state supported by

followers of Blanc, followers of Blanc,

• Urged development of a professional revolutionary Urged development of a professional revolutionary

vanguard to attack capitalist societyvanguard to attack capitalist society

• Attacked the banking systemAttacked the banking system

• Society should be organized on the basis of mutualismSociety should be organized on the basis of mutualism

Page 9: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

MARXISMMARXISM• Termed communismTermed communism

• Abolition of private propertyAbolition of private property• Derived from German Hegelianism, French socialism, and Derived from German Hegelianism, French socialism, and

British classical economicsBritish classical economics• Conflict between dominant and subordinate social groups Conflict between dominant and subordinate social groups

generated conditions that led to the emergence of a new generated conditions that led to the emergence of a new dominant social group. These new social relationships, in dominant social group. These new social relationships, in turn, generated new discontent, conflict, and developmentturn, generated new discontent, conflict, and development

• Fate of proletariat is fate of humanityFate of proletariat is fate of humanity

• Human history must be understood rationally and as a Human history must be understood rationally and as a wholewhole• Class conflict become simplified during the early nineteenth Class conflict become simplified during the early nineteenth

century into a struggle between the bourgeoisie and the century into a struggle between the bourgeoisie and the proletariatproletariat

• Proletariats eventually will take over and organize Proletariats eventually will take over and organize production through propertyless and classless communist production through propertyless and classless communist societysociety

Page 10: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

KARL MARX(1818-1883)KARL MARX(1818-1883)

• German. Born in Trier in Rhineland. German. Born in Trier in Rhineland. • Father was Jewish convert to Lutheranism for employment Father was Jewish convert to Lutheranism for employment

reasons. reasons.

• Marx himself was often anti-Semitic. Marx himself was often anti-Semitic.

• Married to an aristocrat's daughter. Married to an aristocrat's daughter. • Went to Universities of Bonn, Berlin and Jena. Went to Universities of Bonn, Berlin and Jena.

• Published radical papers in Koln and Belgium, [Published radical papers in Koln and Belgium, [Rheinische Rheinische ZeitungZeitung] until 1849 when he came to live in London for many ] until 1849 when he came to live in London for many years.years.

Page 11: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

FRIEDRICH ENGELS(1820-FRIEDRICH ENGELS(1820-1895)1895)

• German manufacturer's son.German manufacturer's son.• Lived in England and managed factory in Manchester. Lived in England and managed factory in Manchester. • Always politically aware and interested in the plight of Always politically aware and interested in the plight of

the workers.  the workers.  

• His His Condition of the Working Class in EnglandCondition of the Working Class in England (1845) (1845) remains a classic account of the poverty in early remains a classic account of the poverty in early industrial Manchester. industrial Manchester. 

• Engels supported Marx for many years. Engels supported Marx for many years.

• Marx's only real friend. Met 1844Marx's only real friend. Met 1844

• Co-wrote the Communist Manifesto with Marx Co-wrote the Communist Manifesto with Marx

Page 12: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

KARL MARX AND THE FIRST KARL MARX AND THE FIRST INTERNATIONALINTERNATIONAL

• Karl Marx made considerable Karl Marx made considerable accommodation to new practical realities; accommodation to new practical realities; • 1864, British/French unionists founded the 1864, British/French unionists founded the

International Working Men’s AssociationInternational Working Men’s Association• encompassed vast array of radical types;encompassed vast array of radical types;

• Marx supported workers trying to reform within Marx supported workers trying to reform within existing system existing system

• Violence of Paris Commune hurt socialism’s Violence of Paris Commune hurt socialism’s reputationreputation

• First International moved to USFirst International moved to US• dissolved 1876dissolved 1876

• Marxism emerged as most important form Marxism emerged as most important form of socialismof socialism

Page 13: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

THE APPEAL OF MARXISMTHE APPEAL OF MARXISM

• It is important to note that Marxism was very appealing It is important to note that Marxism was very appealing

to many in Europe. to many in Europe.

• Authority as a ScienceAuthority as a Science: : 

• Marxism claimed to be "scientific." Marxism claimed to be "scientific."

• Marx said he had proved his doctrines. There was the belief Marx said he had proved his doctrines. There was the belief

what he said would inevitably come about. what he said would inevitably come about.

Page 14: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

POLITICAL FEMINISMPOLITICAL FEMINISM

• Liberal society didn’t improve situation for Liberal society didn’t improve situation for women women • liberals thought women supported conservatives b/c of liberals thought women supported conservatives b/c of

Roman Cath. ChurchRoman Cath. Church

• Obstacles to Achieving EqualityObstacles to Achieving Equality: : • women reluctant to support feminismwomen reluctant to support feminism• Favored nation over feminism/tactical differencesFavored nation over feminism/tactical differences• Difficult for working-class/middle-class to cooperateDifficult for working-class/middle-class to cooperate

• Roman Cath. feminist opposed secular feminists Roman Cath. feminist opposed secular feminists • feminists applied rights of man to women:feminists applied rights of man to women:

• Earliest feminists has odd opinions on sexuality/family Earliest feminists has odd opinions on sexuality/family life/poverty life/poverty • Feminist cause badly divided over goals/tacticsFeminist cause badly divided over goals/tactics

Page 15: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

VOTES FOR WOMEN IN VOTES FOR WOMEN IN BRITAIN:BRITAIN:

• Millicent Fawcett led Millicent Fawcett led National Union of National Union of Women’s Suffrage SocietiesWomen’s Suffrage Societies: : • thought Parliament would only grant vote if thought Parliament would only grant vote if

they showed as respectable/responsible in they showed as respectable/responsible in politicspolitics

• Emmeline PankhurstEmmeline Pankhurst led more radical led more radical branch of English feminists(branch of English feminists(SuffragettesSuffragettes) ) lobbied publicly for suffragelobbied publicly for suffrage• Used violent tactics of arson/window Used violent tactics of arson/window

breaking/postal sabotage/marched on breaking/postal sabotage/marched on Parliament; Parliament;

• Liberal govt. of Herbert Asquith imprisoned Liberal govt. of Herbert Asquith imprisoned demonstrators with forcedemonstrators with force• fed hunger strikers fed hunger strikers • refused to extend franchise;refused to extend franchise;• Women got the vote in 1918, only after Women got the vote in 1918, only after

contribution to the war effortcontribution to the war effort

Page 16: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

POLITICAL FEMINISM ON THE POLITICAL FEMINISM ON THE CONTINENTCONTINENT

• French/German movements much less advanced;French/German movements much less advanced;• Hubertine Auclert campaigned virtually aloneHubertine Auclert campaigned virtually alone

• 1901, the 1901, the National Council of French WomenNational Council of French Women(CNFF) (CNFF) organized upper/middle-class women, didn’t support vote organized upper/middle-class women, didn’t support vote for several yrs for several yrs • French feminists rejected violence,French feminists rejected violence,• never held rallies, never held rallies, • only could vote after WWIIonly could vote after WWII

• German law forbade women from political activityGerman law forbade women from political activity• Union of German Women’s OrganizationsUnion of German Women’s Organizations(BDFK) founded 1894, (BDFK) founded 1894,

• wanted more privileges before suffrage, wanted more privileges before suffrage, • got suffrage 1919 after German defeat/revolutiongot suffrage 1919 after German defeat/revolution• Before WWI, women demanded rights but tactics/success variedBefore WWI, women demanded rights but tactics/success varied

Page 17: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

JEWISH EMANCIPATION JEWISH EMANCIPATION • Emancipation of Jews from ghetto to equal citizens Emancipation of Jews from ghetto to equal citizens

was major accomplishment; was major accomplishment; • impact on Europe – process slow/not completed/different impact on Europe – process slow/not completed/different

in different countriesin different countries

• 1782,1782,• Joseph II(Habsburg emperor) decreed Jews had more/less Joseph II(Habsburg emperor) decreed Jews had more/less

same laws as Christianssame laws as Christians• 17891789

• France, Nat. Assembly recognized Jews as citizens/France, Nat. Assembly recognized Jews as citizens/• During Napoleon wars in Italy/GermanyDuring Napoleon wars in Italy/Germany

• Jews on equal footing Jews on equal footing • steps were uncertain/ sometimes repealed w/changes,steps were uncertain/ sometimes repealed w/changes,• European Jews began to gain rightsEuropean Jews began to gain rights

• RussiaRussia• traditional prejudice until WWI,traditional prejudice until WWI,• police allowed to conduct police allowed to conduct pogromspogroms: organized riots against : organized riots against

JewsJews

Page 18: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

BROADENED OPPORTUNITIESBROADENED OPPORTUNITIES

• After 1848, Jews saw general improvement: After 1848, Jews saw general improvement: • some had full citizenship/could sit in some had full citizenship/could sit in

Parliament; Parliament; • from 1850-80, relatively little prejudice from 1850-80, relatively little prejudice

expressed – outside Russia,expressed – outside Russia,• Jews entered cabinets/govt. offices;Jews entered cabinets/govt. offices;• Associated w/socialists;Associated w/socialists;• migrated west migrated west

• Anti-Semitism erupted in 1870s in GermanyAnti-Semitism erupted in 1870s in Germany• Dreyfus Affair,Dreyfus Affair,• ZionismZionism

• minority movement within Jewish communityminority movement within Jewish community

Page 19: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

LABOR, SOCIALISM AND LABOR, SOCIALISM AND POLITICS TO WWIPOLITICS TO WWI

Urban proletariat and unskilled workers rose/artisans fell Urban proletariat and unskilled workers rose/artisans fell working-class stopped rioting/remaking guildsworking-class stopped rioting/remaking guilds

New institutions: socialism/trade unions/democracyNew institutions: socialism/trade unions/democracy

Page 20: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

TRADE UNIONISMTRADE UNIONISM

• Govt.s began to extend protection to trade unionsGovt.s began to extend protection to trade unions• Britain,1871Britain,1871• France 1836France 1836• Germany,1890 Germany,1890

• Union participation marginal at firstUnion participation marginal at first• large unions had intense opposition, but most of labor large unions had intense opposition, but most of labor

force not organizedforce not organized• Democracy and Political PartiesDemocracy and Political Parties

• All major European states adopted broad-based All major European states adopted broad-based electoral systems (except Russia)electoral systems (except Russia)• Politicians couldn’t ignore workers – democracy sparked Politicians couldn’t ignore workers – democracy sparked

existing political partiesexisting political parties• At this time, socialism opposed nationalismAt this time, socialism opposed nationalism

• Many workers had both sympathiesMany workers had both sympathies• Nationalism prevailed during WWINationalism prevailed during WWI

Page 21: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

GREAT BRITAIN: FABIANISM AND EARLY GREAT BRITAIN: FABIANISM AND EARLY WELFARE PROGRAMSWELFARE PROGRAMS

• Marxism/socialism didn’t make progress in BritainMarxism/socialism didn’t make progress in Britain• Unions/Liberal Party support grewUnions/Liberal Party support grew• Until 1901, general political activity on part of Until 1901, general political activity on part of

labor remained limitedlabor remained limited• House of Lords removed legal protection of House of Lords removed legal protection of

union funds;union funds;• Trades Union Congress launched the Trades Union Congress launched the Labour Labour

PartyParty: : • strikes sprung up but no socialismstrikes sprung up but no socialism

• The Fabian SocietyThe Fabian Society: : • Britain’s most influential socialist group,Britain’s most influential socialist group,• non-Marxist intellectuals;non-Marxist intellectuals;• thought problems could be achieved gradually thought problems could be achieved gradually

peacefully /democraticallypeacefully /democratically• British govt./parties responded slowly to problems;British govt./parties responded slowly to problems;

• Ended w/regulation of some trades/unemployment Ended w/regulation of some trades/unemployment benefits/health carebenefits/health care

• Early welfare legislation only partially satisfactoryEarly welfare legislation only partially satisfactory

Page 22: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

FRANCE: “OPPORTUNISM” FRANCE: “OPPORTUNISM” REJECTEDREJECTED

• Two factions of French socialists:Two factions of French socialists:• Jaures wanted cooperation w/middle-class ministries to Jaures wanted cooperation w/middle-class ministries to

ensure legislation;ensure legislation;• Guesde argued socialists couldn’t support bourgeois Guesde argued socialists couldn’t support bourgeois

cabinet they must overthrow cabinet they must overthrow • govt. response to Dreyfus Affair: govt. response to Dreyfus Affair: • 1899,socialist Alexander Millerand appointed to cabinet1899,socialist Alexander Millerand appointed to cabinet

Page 23: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

SECOND INTERNATIONALSECOND INTERNATIONAL• Founded 1889 for unification of parties;Founded 1889 for unification of parties;• Debated issue of Debated issue of opportunismopportunism::• cabinet participation by socialists; cabinet participation by socialists; • Amsterdam Congress condemned it,Amsterdam Congress condemned it,

• Jaures accepted decision and formed the united Jaures accepted decision and formed the united Socialist PartySocialist Party

• French labor had roots in anarchism was French labor had roots in anarchism was uninterested w/politicsuninterested w/politics• Confederation Generale du Travail appealed to Confederation Generale du Travail appealed to

these workers w/syndicalism/ strikes these workers w/syndicalism/ strikes • Middle-class Radical ministry used troops to Middle-class Radical ministry used troops to

suppress strikessuppress strikes

Page 24: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

GERMANY: SOCIAL DEMOCRATS GERMANY: SOCIAL DEMOCRATS AND REVISIONISMAND REVISIONISM

• German Social Democratic Party(SPD) German Social Democratic Party(SPD) • Kept Marxist socialism alive; Kept Marxist socialism alive; • SDP founded 1875,SDP founded 1875,• divided b/t reform advocates/revolutionariesdivided b/t reform advocates/revolutionaries

• Bismarck’s Repression of the SPDBismarck’s Repression of the SPD: : • Thought socialism would undermine Thought socialism would undermine

politics/society, politics/society, • used excuses to push antisocialist laws – even used excuses to push antisocialist laws – even

w/this pressure, SPD polled more votes in w/this pressure, SPD polled more votes in elections to the elections to the ReichstagReichstag

• Repression didn’t work,Repression didn’t work,• Bismarck tried social welfare legislationBismarck tried social welfare legislation• accident insurance/old age/disability pensionsaccident insurance/old age/disability pensions

Page 25: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

THE ERFURT PROGRAMTHE ERFURT PROGRAM• Emp William II forced Bismarck’s resignationEmp William II forced Bismarck’s resignation

• allowed antisocialist legislation to expire, party needed to allowed antisocialist legislation to expire, party needed to decide attitude towards empiredecide attitude towards empire

• Erfurt ProgramErfurt Program: : • 1891, declared imminent doom of capitalism1891, declared imminent doom of capitalism• necessity of socialist ownership; necessity of socialist ownership;

• decided to accomplish through legal participation, thought decided to accomplish through legal participation, thought revolution was inevitablerevolution was inevitable

• opposed in theory, but worked in institutionsopposed in theory, but worked in institutions

• Debate over RevisionismDebate over Revisionism: : • Eduard Bernstein saw inner contradictions of Eduard Bernstein saw inner contradictions of

capitalism not developing, thought that revisions capitalism not developing, thought that revisions were needed were needed

• RevisionismRevisionism; generated heated debate; generated heated debate• finally condemned(finally condemned(ReichstagReichstag was too weak) was too weak)• While calling for revolution, SPD used Revisionism, worked While calling for revolution, SPD used Revisionism, worked

for electoral gainsfor electoral gains• Augus14,1914, SPD members of Augus14,1914, SPD members of ReichstagReichstag

• voted unanimously for war creditvoted unanimously for war credit

Page 26: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

RUSSIA: INDUSTRIAL RUSSIA: INDUSTRIAL DEVELOPMENT AND THE BIRTH DEVELOPMENT AND THE BIRTH

OF BOLSHEVISMOF BOLSHEVISM

•   Russia entered industrial age and confronted problems,Russia entered industrial age and confronted problems,

• Dealt with political and economic problems at the same Dealt with political and economic problems at the same

time, reflected in Russian socialismtime, reflected in Russian socialism

Page 27: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

WITTE’S PROGRAM FOR WITTE’S PROGRAM FOR INDUSTRIAL GROWTHINDUSTRIAL GROWTH

• Alexander II and Nicholas II determined for Alexander II and Nicholas II determined for industrial power industrial power

• Sergei Witte led Russia into industrial age led Russia into industrial age• pursued planned economic pursued planned economic

development/high taxes/ protective development/high taxes/ protective tariffs/gold standard/efficiency,tariffs/gold standard/efficiency,

• established strong financial relationships established strong financial relationships w/French money marketw/French money market• led to diplomatic cooperation led to diplomatic cooperation

• Favored heavy industriesFavored heavy industries• Russia railway system doubled in length Russia railway system doubled in length • Coal output tripled, Coal output tripled, • more iron/textile production,more iron/textile production,• Factory system was used more Factory system was used more

Page 28: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

EFFECTS OF WITTEEFFECTS OF WITTE• Industrialism made landowners feel that Industrialism made landowners feel that

foreign capitalists were getting too much of the foreign capitalists were getting too much of the

profitprofit

• small/significant proletariat emerged w/poor small/significant proletariat emerged w/poor

conditions/little state protection: conditions/little state protection: • Witte enacted 11.5 hour workday but Witte enacted 11.5 hour workday but

strikes/discontent continuedstrikes/discontent continued

• Peasants still burdened Peasants still burdened • free peasants owned land through the free peasants owned land through the mirmir(village); (village);

• kulakskulaks: free peasants who worked for larger noble estates: free peasants who worked for larger noble estates

Page 29: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

SOCIAL REVOLUTIONARY SOCIAL REVOLUTIONARY PARTYPARTY::

•founded 1901,founded 1901,

•reached back to Populistsreached back to Populists• opposed industrialism/wanted community opposed industrialism/wanted community

• Constitutional Democratic PartyConstitutional Democratic Party:(Cadets) :(Cadets) • formed 1903, formed 1903,

• drew members from local councils (drew members from local councils (zemstvoszemstvos) )

• wanted parliament regime w/civil libertieswanted parliament regime w/civil liberties

Page 30: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

LENIN’S EARLY THOUGHT AND LENIN’S EARLY THOUGHT AND CAREER:CAREER:

• Russians had no representation, Russians had no representation, • leading Russian Marxist was Gregory Plekhanovleading Russian Marxist was Gregory Plekhanov

• taught Vladimir Ulyanov(Lenin);taught Vladimir Ulyanov(Lenin);

• Lenin spent much time in Switzerland Lenin spent much time in Switzerland • Became involved in disputes of Russian Social Democratic exilesBecame involved in disputes of Russian Social Democratic exiles• Criticized both accommodation/trade unionism, Criticized both accommodation/trade unionism, • thought tight/elite party should teach massesthought tight/elite party should teach masses

Page 31: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

1903 LONDON CONGRESS1903 LONDON CONGRESS•Lenin forced a split:Lenin forced a split:• Lenin’s faction assumed name Lenin’s faction assumed name

BolsheviksBolsheviks(majority)(majority)

• Other faction assumed Other faction assumed MenshevikMenshevik(minority)(minority)• Bolsheviks wanted elite professional revolutionariesBolsheviks wanted elite professional revolutionaries

• Menshiviks wanted large mass membershipMenshiviks wanted large mass membership

•1905, Lenin urged socialist revolution to 1905, Lenin urged socialist revolution to unite proletariat/peasantryunite proletariat/peasantry• Lenin’s ideas of Bolshevik elite and united Lenin’s ideas of Bolshevik elite and united

proletariat/peasantry influenced revolution:proletariat/peasantry influenced revolution:

• Bolsheviks seized power 1917Bolsheviks seized power 1917

Page 32: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

THE REVOLUTION OF 1905THE REVOLUTION OF 1905• Nicholas II dismissed Witte 1903 to try Nicholas II dismissed Witte 1903 to try

to quell resentment; to quell resentment; • entered losing war w/Japan;entered losing war w/Japan;

• Nov22,1905, priest Father Gapon led Nov22,1905, priest Father Gapon led petitioners to Winter Palace in St. petitioners to Winter Palace in St. Petersburg Petersburg • Troops opened fire, killing hundreds:Troops opened fire, killing hundreds:

• Bloody SundayBloody Sunday: : • ordinary Russians thought they couldn’t trust ordinary Russians thought they couldn’t trust

their govt.their govt.• Revolutionary disturbances spread,Revolutionary disturbances spread,• Officials assassinated/strikes/ mutiniesOfficials assassinated/strikes/ mutinies

• Oct 1905, worker groups(Oct 1905, worker groups(soviets)soviets) controlled St. Petersburg: controlled St. Petersburg:

• Nicholas II recalled Witte/issued Nicholas II recalled Witte/issued October ManifestoOctober Manifesto: promised Russia : promised Russia constitutional govt.constitutional govt.

Page 33: INDUSTRIAL POLITICAL REACTION. CLASSICAL ECONOMICS Economists whose thought derived largely from Adam Smith dominated private and public discussions of

AFTERMATH - 1906AFTERMATH - 1906• Nicholas announced election of the Nicholas announced election of the Duma Duma

(representative body); (representative body); • April elections turned radical group of repsApril elections turned radical group of reps

• tsar replaced Witte w/tsar replaced Witte w/P. A. Stolypin,P. A. Stolypin, • persuaded him to dissolve the Duma persuaded him to dissolve the Duma • 22ndnd and 3 and 3rdrd elections held, 3 elections held, 3rdrd Duma was pliable, Duma was pliable,• Nicholas II could recapture political influenceNicholas II could recapture political influence

• Stolypin started repressing rebellionStolypin started repressing rebellion• condemned almost 700 peasants to condemned almost 700 peasants to

death/cancelled redemptive paymentsdeath/cancelled redemptive payments• hatred of Stolypin still widespread, hatred of Stolypin still widespread,

• assassinated 1911, govt. muddled alongassassinated 1911, govt. muddled along

• Monk Grigory Rasputin ascended by allegedly Monk Grigory Rasputin ascended by allegedly curing Nicholas’ son; curing Nicholas’ son; • influence undermined govt./increased discontentinfluence undermined govt./increased discontent